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    Domestic Tourism Market

    ID: MRFR/CR/22939-HCR
    128 Pages
    Snehal Singh
    September 2025

    Domestic Tourism Market Research Report By Purpose (Leisure, Business, Educational, Medical, Religious), By Budget (Low, Mid, High), By Mode of Travel (Air, Rail, Road (Self-driving), Road (Chauffeured)), By Accommodation Type (Hotel/Resort, Guest House/B, Homestay/AirBnB, Camping/RV) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2034

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    Domestic Tourism Market Research Report — Global Forecast till 2034 Infographic
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    Domestic Tourism Market Summary

    The Global Domestic Tourism Market is projected to grow from 1015.6 USD Billion in 2024 to 1407.6 USD Billion by 2035.

    Key Market Trends & Highlights

    Domestic Tourism Key Trends and Highlights

    • The market is expected to witness a compound annual growth rate of 3.01 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 1407.6 USD Billion, reflecting a robust growth trajectory.
    • In 2024, the market is valued at 1015.6 USD Billion, indicating a strong foundation for future expansion.
    • Growing adoption of sustainable travel practices due to increasing environmental awareness is a major market driver.

    Market Size & Forecast

    2024 Market Size 1015.6 (USD Billion)
    2035 Market Size 1407.6 (USD Billion)
    CAGR (2025-2035) 3.01%

    Major Players

    Mandarin Oriental Hotel Group, Wyndham Hotel Group, Hilton, Best Western Hotels Resorts, Radisson Hotel Group, Rosewood Hotels Resorts, ShangriLa Hotels and Resorts, Accor, Kempinski Hotels, InterContinental Hotels Group, Four Seasons Hotels and Resorts, Hyatt Hotels Corporation, IHG Hotels Resorts, Choice Hotels International, Marriott International

    Domestic Tourism Market Trends

    Key market drivers of the domestic tourism market include rising disposable income, increasing urbanization, and government initiatives promoting domestic travel. The expanding middle class with greater spending power seeks experiences and leisure activities, driving domestic tourism growth. Opportunities lie in developing experiential and sustainable tourism packages, catering to diverse interests and preferences.

    Recent trends indicate a surge in staycations and road trips due to increased flexibility and affordability. Travelers opt for shorter and frequent trips closer to home, seeking relaxation and rejuvenation. The use of online platforms for booking and planning has simplified travel arrangements. Additionally, there is a growing interest in niche and immersive experiences, such as culinary tours, adventure activities, and cultural heritage exploration.

    The domestic tourism sector is poised for robust growth as travelers increasingly seek local experiences that resonate with their cultural and environmental values.

    U.S. Department of Commerce

    Domestic Tourism Market Drivers

    Market Growth Projections

    The Global Domestic Tourism Market Industry is poised for substantial growth, with projections indicating a market value of 1015.6 USD Billion in 2024 and an anticipated increase to 1407.6 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 3.01% from 2025 to 2035, reflecting a robust demand for domestic travel experiences. Factors such as rising disposable incomes, technological advancements, and government support are likely to contribute to this upward trend. The increasing interest in cultural heritage and sustainable travel further underscores the potential for growth within the industry, positioning domestic tourism as a vital component of the global economy.

    Rising Disposable Incomes

    The Global Domestic Tourism Market Industry is experiencing growth driven by increasing disposable incomes among consumers. As individuals have more financial resources at their disposal, they are more likely to allocate funds towards travel and leisure activities within their own countries. This trend is particularly evident in emerging economies where a burgeoning middle class is eager to explore domestic destinations. For instance, in 2024, the market is projected to reach 1015.6 USD Billion, reflecting a shift in consumer behavior towards domestic travel. This increase in spending power suggests a robust demand for domestic tourism experiences, which could further stimulate the industry.

    Technological Advancements

    Technological innovations are playing a pivotal role in shaping the Global Domestic Tourism Market Industry. The proliferation of mobile applications and online booking platforms has simplified the travel planning process, making it more accessible for consumers. Enhanced connectivity through social media allows travelers to share experiences, thereby influencing others to explore domestic destinations. In 2024, the market is expected to be valued at 1015.6 USD Billion, indicating a growing reliance on technology in the tourism sector. These advancements not only improve customer engagement but also provide businesses with valuable data to tailor their offerings, potentially leading to increased customer satisfaction and loyalty.

    Government Initiatives and Support

    Government initiatives aimed at promoting domestic tourism significantly impact the Global Domestic Tourism Market Industry. Various countries are implementing policies to enhance infrastructure, improve accessibility, and promote local attractions. For example, investment in transportation networks and marketing campaigns can encourage citizens to explore their own regions. Such initiatives are likely to contribute to the projected market growth, with estimates suggesting a rise to 1407.6 USD Billion by 2035. This proactive approach by governments not only boosts local economies but also fosters a sense of national pride among citizens, thereby enhancing the appeal of domestic travel.

    Cultural Heritage and Local Experiences

    The Global Domestic Tourism Market Industry is increasingly influenced by travelers' desire for authentic cultural experiences. As individuals seek to connect with their heritage and explore local traditions, destinations that offer unique cultural attractions are becoming more popular. This trend is evident in the growing interest in local festivals, culinary experiences, and historical sites. The market is projected to grow at a CAGR of 3.01% from 2025 to 2035, indicating a sustained interest in cultural tourism. By promoting local experiences, destinations can attract a diverse range of travelers, thereby enhancing the overall appeal of domestic tourism.

    Environmental Awareness and Sustainable Travel

    The Global Domestic Tourism Market Industry is witnessing a shift towards more environmentally conscious travel choices. As awareness of environmental issues grows, travelers are increasingly seeking sustainable tourism options that minimize their ecological footprint. This trend is reflected in the rising popularity of eco-friendly accommodations and responsible travel practices. The market's projected growth to 1407.6 USD Billion by 2035 may be partially attributed to this shift, as consumers prioritize sustainability in their travel decisions. Destinations that embrace sustainable practices not only attract eco-conscious travelers but also contribute to the preservation of natural resources, ensuring long-term viability for the tourism sector.

    Market Segment Insights

    Domestic Tourism Market Purpose Insights  

    The Domestic Tourism Market is segmented by purpose into leisure, business, educational, medical, and religious. The leisure segment is the largest, accounting for over 50% of the domestic tourism market revenue in 2023 and is projected to continue to grow at a steady pace over the next ten years. The business segment is the second largest, accounting for over 25% of the domestic tourism market revenue in 2023.

    The educational segment is the third largest, accounting for over 10% of the domestic tourism market revenue in 2023.The medical segment is the fourth largest, accounting for over 5% of the domestic tourism market revenue in 2023. The religious segment is the smallest, accounting for over 2% of the domestic tourism market revenue in 2023. The leisure segment is driven by factors such as the increasing disposable income of consumers, the growing popularity of short-haul travel, and the rise of online travel agencies.

    The business segment is driven by factors such as the increasing globalization of businesses, the growing number of business travelers, and the development of new technologies that make business travel more convenient.The educational segment is driven by factors such as the increasing number of students studying abroad, the growing popularity of online education, and the development of new educational programs that incorporate travel. The medical segment is driven by factors such as the increasing prevalence of chronic diseases, the growing demand for specialized medical care, and the development of new medical technologies.

    The religious segment is driven by factors such as the growing popularity of religious tourism, the increasing number of religious festivals and events, and the development of new religious destinations.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Domestic Tourism Market Budget Insights  

    The budget segment of the Domestic Tourism Market is expected to witness steady growth in the coming years. In 2023, the budget segment accounted for approximately 45% of the overall market revenue, and this share is projected to remain stable in the forecast period. The growth of the budget segment can be attributed to the increasing popularity of budget-friendly travel options, such as guesthouses, homestays, and budget airlines. Moreover, the growing number of middle-class consumers in emerging economies is also driving the demand for budget-friendly travel.Within the budget segment, the low-cost segment is expected to witness the highest growth rate.

    This segment caters to travelers who are looking for the most affordable travel options. The mid-cost segment is also expected to grow at a healthy pace, as it offers a balance between affordability and comfort. The high-cost segment is expected to grow at a slower pace, as it caters to travelers who are willing to spend more on their travel experiences.

    Domestic Tourism Market Mode of Travel Insights  

    The mode of travel segment plays a crucial role in shaping the Domestic Tourism Market landscape. Air travel remains the preferred choice for domestic tourists due to its convenience and time-saving advantages.

    In 2023, the air travel segment held a significant share of the Domestic Tourism Market revenue, valued at USD 425.6 billion. This dominance is expected to continue in the coming years, with the segment projected to reach USD 507.8 billion by 2032. Rail travel is another popular mode of transport, offering a cost-effective and scenic way to explore domestic destinations.The rail travel segment is estimated to witness steady growth, reaching USD 243.6 billion by 2032. Road travel, both self-driving and chauffeured, also holds a substantial share of the market.

    Self-driving offers flexibility and independence, while chauffeured services provide a comfortable and hassle-free experience.

    The road travel segment is anticipated to expand at a CAGR of 2.8%, reaching USD 335.4 billion by 2032. These insights highlight the diverse preferences and evolving trends within the Domestic Tourism Market's mode of travel segment, enabling stakeholders to tailor their offerings and strategies accordingly.

    Domestic Tourism Market Accommodation Type Insights

    The accommodation type segment in the Domestic Tourism Market is expected to witness steady growth in the coming years. In 2023, the hotel/resort sub-segment held the largest market share, accounting for over 55% of the total revenue. Guest houses/B and homestays/AirBnBs are also expected to show strong growth, driven by the increasing popularity of budget-friendly and experiential travel.

    Camping/RV is another growing segment, particularly among adventure and outdoor enthusiasts. The growth of this segment is expected to be driven by the increasing popularity of road trips and outdoor activities. Overall, the accommodation type segment is expected to benefit from the growing demand for domestic tourism, with travelers seeking unique and authentic experiences.

    Get more detailed insights about Domestic Tourism Market Research Report — Global Forecast till 2034

    Regional Insights

    The regional segmentation of the Domestic Tourism Market offers valuable insights into the market's geographical distribution and growth potential. North America is anticipated to hold a dominant position in the market, with a projected revenue of USD 456.3 billion in 2024, primarily driven by the region's developed tourism infrastructure and diverse range of attractions.

    Europe follows closely with a revenue of USD 389.7 billion, benefiting from its rich cultural heritage and historical landmarks. The Asia-Pacific region exhibits significant growth potential, with a projected revenue of USD 298.4 billion in 2024, attributed to the region's burgeoning middle class and increasing disposable income.South America and the Middle East and Africa (MEA) regions are also expected to contribute to the market's growth, albeit with smaller market shares. These regional insights are crucial for businesses operating in the Domestic Tourism Market, enabling them to tailor their strategies to specific regional market dynamics and tap into growth opportunities.

    Domestic Tourism Market Regional

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    Major players in Domestic Tourism Market industry are continuously striving to maintain their market position by making strategic investments, forming partnerships, and acquiring other companies. Leading Domestic Tourism Market players are focusing on expanding their reach into emerging markets and investing in technology and innovation to enhance the customer experience.

    Domestic Tourism Market development is being driven by the increasing demand for travel and leisure, coupled with government initiatives to promote domestic tourism as part of economic stimulus plans. The competitive landscape of Domestic Tourism Market is likely to intensify in the coming years, with new entrants and established players vying for a larger share of the market.Among the leading companies in the Domestic Tourism Market industry is , which has a strong presence in several countries around the world.

    The company offers a wide range of travel and tourism services, including tour packages, hotel bookings, and transportation services. has a strong brand recognition and a loyal customer base. The company is consistently investing in its infrastructure and expanding its product offerings to meet the changing needs of travelers.A leading competitor in the Domestic Tourism Market industry is , which has a strong presence in the Asia-Pacific region.

    The company offers a wide range of travel and tourism services, including tour packages, hotel bookings, and adventure activities. has a strong network of partners and suppliers, allowing it to offer competitive rates and exclusive packages. The company is also focused on investing in sustainable tourism practices to meet the growing demand for eco-friendly travel options.

    Key Companies in the Domestic Tourism Market market include

    Industry Developments

    • Q2 2024: Marriott International Opens 500th Hotel in Greater China, Expanding Domestic Tourism Footprint Marriott International announced the opening of its 500th hotel in Greater China, marking a significant milestone in its expansion strategy to capture the growing domestic tourism market in the region.
    • Q2 2024: Indian Government Launches 'Dekho Apna Desh' 2.0 Campaign to Boost Domestic Tourism India's Ministry of Tourism launched the second phase of its 'Dekho Apna Desh' campaign, aiming to increase domestic travel and support local tourism businesses through targeted marketing and incentives.
    • Q3 2024: Trip.com Group Partners with China State Railway Group to Enhance Domestic Rail Tourism Trip.com Group announced a strategic partnership with China State Railway Group to integrate ticketing and travel packages, aiming to make domestic rail tourism more accessible and appealing to Chinese travelers.
    • Q3 2024: Accor Launches New Midscale Brand 'Handwritten Collection' Targeting Domestic Leisure Travelers Accor unveiled its new 'Handwritten Collection' brand, focusing on boutique hotels in secondary cities to attract domestic leisure travelers seeking unique local experiences.
    • Q4 2024: Japan Airlines and All Nippon Airways Announce Joint Domestic Tourism Promotion Initiative Japan Airlines and ANA launched a joint marketing campaign to promote domestic travel, offering discounted fares and special packages to stimulate tourism within Japan.
    • Q4 2024: Hilton Opens First Motto Hotel in Australia, Targeting Urban Domestic Tourists Hilton Worldwide opened its first Motto by Hilton hotel in Sydney, designed to appeal to domestic urban travelers seeking affordable, flexible accommodation in city centers.
    • Q1 2025: Thailand Approves $1 Billion Domestic Tourism Stimulus Package The Thai government approved a $1 billion stimulus package to support domestic tourism, including subsidies for local travel and incentives for hospitality businesses.
    • Q1 2025: MakeMyTrip Launches 'India Unexplored' Platform to Promote Offbeat Domestic Destinations MakeMyTrip introduced a new digital platform, 'India Unexplored,' featuring curated travel experiences in lesser-known domestic destinations to encourage local tourism.
    • Q2 2025: Airbnb Partners with South African Tourism Board to Boost Domestic Travel Airbnb signed a partnership agreement with the South African Tourism Board to promote domestic travel, focusing on rural and township experiences for local tourists.
    • Q2 2025: Wyndham Opens 100th Hotel in India, Expanding Domestic Tourism Network Wyndham Hotels & Resorts celebrated the opening of its 100th property in India, reinforcing its commitment to the growing domestic tourism market.
    • Q3 2025: Vietnam Airlines Launches New Domestic Routes to Underserved Provinces Vietnam Airlines announced the launch of several new domestic routes connecting major cities to underserved provinces, aiming to stimulate local tourism and economic development.
    • Q3 2025: Expedia Group Acquires Local Travel Startup to Strengthen Domestic Tourism Offerings in Brazil Expedia Group completed the acquisition of a Brazilian travel startup specializing in domestic packages, expanding its portfolio to better serve the growing demand for local tourism experiences.

    Future Outlook

    Domestic Tourism Market Future Outlook

    The Domestic Tourism Market is projected to grow at a 3.01% CAGR from 2024 to 2035, driven by increased disposable income, technological advancements, and evolving consumer preferences.

    New opportunities lie in:

    • Develop personalized travel packages leveraging AI for enhanced customer experiences.
    • Invest in sustainable tourism initiatives to attract eco-conscious travelers.
    • Expand digital marketing strategies targeting local attractions and experiences.

    By 2035, the Domestic Tourism Market is expected to exhibit robust growth, reflecting evolving consumer dynamics and innovative offerings.

    Market Segmentation

    Domestic Tourism Market Budget Outlook

    • Low
    • Mid
    • High 

    Domestic Tourism Market Purpose Outlook

    • Leisure
    • Business
    • Educational
    • Medical
    • Religious 

    Domestic Tourism Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Domestic Tourism Market Mode of Travel Outlook

    • Air
    • Rail
    • Road (Self-driving)
    • Road (Chauffeured) 

    Domestic Tourism Market Accommodation Type Outlook

    • Hotel/Resort
    • Guest House/B
    • Homestay/AirBnB
    • Camping/RV

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024 1015.60 (USD Billion)
    Market Size 2025 91046.18 (USD Billion)
    Market Size 2034 1366.47 (USD Billion)
    Compound Annual Growth Rate (CAGR) 3.01% (2025 - 2034)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2023
    Market Forecast Period 2025 - 2034
    Historical Data 2019 - 2023
    Market Forecast Units USD Billion
    Key Companies Profiled Mandarin Oriental Hotel Group, Wyndham Hotel Group, Hilton, Best Western Hotels Resorts, Radisson Hotel Group, Rosewood Hotels Resorts, ShangriLa Hotels and Resorts, Accor, Kempinski Hotels, InterContinental Hotels Group, Four Seasons Hotels and Resorts, Hyatt Hotels Corporation, IHG Hotels Resorts, Choice Hotels International, Marriott International
    Segments Covered Purpose, Budget, Mode of Travel, Accommodation Type, Regional
    Key Market Opportunities Growth in Shorthaul Travel Increasing Disposable Income Domestic Tourism Incentives Emphasis on Wellness and Nature Technological Advancements
    Key Market Dynamics Government initiatives Rising disposable income Improved infrastructure Growing middle class Increased awareness about domestic destinations
    Countries Covered North America, Europe, APAC, South America, MEA
       

    FAQs

    What is the market size of the Domestic Tourism Market?

    The Domestic Tourism market is projected to grow at a CAGR of 3.01% between 2025 and 2034 , reaching a value of USD 1366.47 billion by 2034

    What are the key regions in the Domestic Tourism Market?

    The key regions in the Domestic Tourism Market are North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

    Which region is expected to hold the largest market share in the Domestic Tourism Market?

    North America is expected to hold the largest market share in the Domestic Tourism Market, accounting for over 40% of the market in 2023.

    What are the key factors driving the growth of the Domestic Tourism Market?

    The growth of the Domestic Tourism Market is primarily driven by rising disposable income, increasing urbanization, and growing awareness of domestic tourist destinations.

    What are the key challenges faced by the Domestic Tourism Market?

    The key challenges faced by the Domestic Tourism Market include seasonality, lack of infrastructure, and political instability in some regions.

    Who are the key competitors in the Domestic Tourism Market?

    The key competitors in the Domestic Tourism Market include Airbnb, Booking Holdings, Expedia Group, TripAdvisor, and Marriott International.

    What are the key trends in the Domestic Tourism Market?

    Key trends in the Domestic Tourism Market include the rise of online travel agencies, the growing popularity of short-term rentals, and the increasing demand for sustainable tourism.

    What are the major applications of the Domestic Tourism Market?

    The major applications of the Domestic Tourism Market include leisure travel, business travel, and religious tourism.

    What is the growth rate of the Domestic Tourism Market?

    The Domestic Tourism Market is expected to grow at a CAGR of 3.01% from 2025 to 2034.

    What are the key opportunities in the Domestic Tourism Market?

    Key opportunities in the Domestic Tourism Market include the development of new tourist destinations, the expansion of online travel agencies, and the growing demand for personalized travel experiences.

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